Bank of America Overdraft Fee, Limits, and Protection

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Bank of America FeesCostMaximum Overdrafts Per DayMaximum Daily Cost
Overdraft Fee$354$140
Insufficient Funds Fee$354$140
Linked Account Transfer Fee$121$12

Note that beginning in May 2022, Bank of America is set to remove linked account transfer fees and NSF fees. They will also be lowering the overdraft fee from $35 to $10. Go to: bankofamerica.com

Have you ever been one day from payday when all your bills are due? This can lead to unpaid bills, credit problems, and other major financial issues. With modern banking, we’re protected from unforeseen circumstances that affect our ability to pay bills. This is called overdraft protection.

Essentially, if you are automatically charged for a bill, but don’t have the money in your bank account, the bank will loan you the money for a fee. However, you must be careful with overdraft fees. One overdraft fee can offset your entire budget and, after just a few days, can accrue into hundreds of dollars.

That’s why it’s imperative that you know your bank’s overdraft policies and fees, how to avoid them and find alternatives to access the cash you need.

What We’ll Cover:

What Is Bank of America’s Overdraft Policy?

Bank of America‘s overdraft policy does not allow for overdrawing on ATM withdrawals and everyday purchases if you don’t have the funds. In this event, Bank of America will charge you a non-sufficient funds (NSF) fee.

Bank of America offers customers emergency cash through their ATMs, which can cause you to overdraft your account. Each example of this situation will depend on the history of the account and must be authorized by Bank of America. However, Bank of America offers two options, regarding overdrawing on other payments.

Bank of America allows overdrafts on the following transactions, four times a day, at their discretion:

  • Checks
  • Scheduled Payments
  • Emergency Bank of America ATM Withdrawal

Bank of America allows two overdraft options for your checking account:

  • Standard – This allows Bank of America to paychecks and scheduled payments and charge you an overdraft fee.
  • Decline All – This automatically declines anything that attempts to charge your account more than there is in it.

It may seem better to opt for the second option, but there are some problems with this one. It should be noted that, with the second option, checks and scheduled payments will be returned unpaid and you will still be charged an NSF fee.

The company will likely try to get paid multiple times, which can lead to multiple NSF fees. Since you’ll end up with a $35 fee, either way, it is better to just go with the standard option. This way, at least your bill will be paid and won’t keep attempting to charge your account.

Bank of America Advantage Banking

How Much Are Bank of America’s Overdraft Fees?

Bank of America charges a $35 overdraft fee per transaction.

This includes every time a check or scheduled payment attempts to go through. However, in the event that you need emergency cash from an ATM and must overdraw your account, you may avoid a fee by depositing the money before the end of the same business day.

Bank of America allows four overdrafts per day. This means that they will charge you up to $140 for each day that your bank is in the red. If your account is in the red for five days, Bank of America charges another $35 fee.

How Much Will Bank of America Let Me Overdraw My Account at an ATM?

There are times when we have an emergency and just need cash. If you don’t have the money in your account but know that you will later, you may be eligible to overdraw at an ATM.

Each day, you can withdraw up to $1,500 from a Bank of America ATM. This is unaffected by whether you are overdrawing or not. So, does Bank of America let you overdraw at ATMs? Yes, but each time you do, it will charge the $35 fee.

If you need to opt into these settings, you can overdraw at a Bank of America ATM by:

  • Visiting your local bank branch
  • Editing your overdraft settings in your mobile app
  • Editing your overdraft settings through online banking
  • Calling Bank of America

To cancel these optional ATM overdrafts, you’ll use the same process.

 Bank of America ATM

Does Bank of America charge NSF Fees?

Yes, Bank of America charges $35 for each NSF fee, returned item fee, or other unapproved charges. For example, if a Bank of America member attempts to pay a bill, but spends the money before the bill is charged, they will be charged a returned item fee.

Can You Get a Bank of America Overdraft Fee Waived?

There are circumstances when an overdraft fee is simply not your fault. If a Bank of America account holder overdraws for the first time in 30 years, they’re more likely to get the fee waived. It is standard practice to allow for one overdraft fee per year to be waived, but this is not always the case.

If you’ve overdrawn, the rules are not set in stone. Give Bank of America a call and see what they can do to help.

How to Avoid Overdraft Fees with Bank of America

There’s nothing more frustrating than getting stuck in an overdraft loop with your bank. If you’ve ever overdrawn your account, and then not had the money to pay the original bill because of the overdraft fee, then you know what we mean. That’s why it’s better to just avoid overdraft fees altogether!

Here are a few ways to avoid overdrawing your account with Bank of America:

Option 1: Use Bank of America’s Overdraft Protection

Bank of America overdraft coverage is there when you need it. With this tool, checking account holders (who also have a savings account) can avoid overdraft fees by automatically transferring funds from your savings account. Bank of America charges a $12 fee for each use.

Option 2: Take Advantage of No-fee Overdraft Apps

Not only does Bank of America charge for their overdrafts, but they also charge for overdraft protection?! Just for using your own money, you are charged a fee. So, if you needed $40 for gas money to get home but only have $20 left in your account, you would end up with a $40 tank of gas that cost you $75.

This is not an issue with a no-fee overdraft app, like Chime SpotMe.* As long as you have $200 or more deposited to your account each month, you’re able to overdraw your account for free!

However, Chime SpotMe doesn’t allow for a fast solution, since you have to have a history with Chime before you can overdraw. If you need cash now, keep reading for the ideal solution for your case.

You’ve got your eye on a new pair of $150 shoes that you know will look great on you, but there’s only $50 in your account. Where most banks would approve the transaction and sting you with a $35 overdraft fee (turning your purchase into a $185 transaction), SpotMe approves the transaction with no fees attached. The negative amount will be balanced by your next deposit as long as your paycheck is regularly deposited in your account.

Sick of overdraft fees? Explore SpotMe.

Option 3: Get Fast Cash with a Cash-Advance App

If you need quick cash but want to avoid overdraft fees, then there are cash-advance apps and websites that can help!

One cash-advance app, PockBox, is above the rest, though. Through PockBox, users can borrow up to $2,500 by the next business day! PockBox isn’t very picky about your credit score, either.

Short-term borrowing won’t solve long-term financial problems. But if you need cash quickly to solve a non-recurrent issue, this app could be ideal.

Click here for up to $2,500 in minutes.

Final Thoughts and What To Do Next…

So, now that you’ve learned the ins and outs of Bank of America’s $35 overdraft and NSF fees, you should feel more confident about keeping your account in the green.

And while it might not seem like a lot of money, it can add up faster than you think. So remember, when you need to avoid overdraft fees with Bank of America, you can:

Nobody wants to pay overdraft fees, but luckily Bank of America has various options to help you. Keep our tips in mind, and you can rest easy knowing overdraft fees won’t get the better of you.

*Chime SpotMe eligibility requirements and overdraft limits: Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Spending Account each month. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Friends transfers, or Chime Checkbook transactions. See Terms and Conditions.
Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.

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